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EU strikes deal with Chile in bid to beat China to vast lithium reserves
- Upgrade to 2002 trade deal will see Chile make exports to the EU restrictions-free and narrow the scope of its ‘dual pricing policy’ for local firms
- Brussels has been pushing to reduce reliance on China for critical minerals like lithium that are key to its green transition goals for 2030
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Finbarr Berminghamin Brussels
The European Union has upgraded its trade ties with Chile as part of a bid to tap the South American country’s massive reserves of lithium – the “white gold” crucial to making the batteries that will power the industries of the future.
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The agreement, an update to a free-trade deal signed 20 years ago, will prevent Chile from giving exclusive trading rights to any specific company.
Even as Brussels pushes to reduce its reliance on China for critical minerals, the Chile lithium deal is also seen as a way to beat Beijing in the race to access more of the valuable metal, dubbed “white gold” for its colour and market value.
It will also help the EU get better access to Chilean copper – another critical mineral.
“[The agreement will] certainly help us diversify our resources and move out of dependence on China, particularly on lithium and copper,” an EU official said on Friday.
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“It is also a model for other agreements that we may have with other partners where the components of non-discriminatory access to raw materials will be key.”
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